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Other Assets
12 Months Ended
Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
Other Assets

Patent Licenses

From time to time, we enter into agreements to license patents. The carrying value, net of amortization, was $2.4 million and $3.2 million as of December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, $0.5 million and $0.7 million was included in other current assets and $1.9 million and $2.5 million was included in other assets, respectively. We have $4.9 million of historical cost in patent licenses related to such agreements. We are amortizing the patent licenses over the estimated useful lives of the patents, which range from three years to eleven years. Amortization expense on patent licenses was $0.7 million, $0.6 million and $0.4 million for the years ended December 31, 2017, 2016 and 2015, respectively, and was included in cost of SaaS and license revenue in our consolidated statements of operations.

Loan to a Distribution Partner

In September 2016, we entered into dealer and loan agreements with a distribution partner. The dealer agreement enables the distribution partner to resell our SaaS services and hardware to their subscribers. Under the loan agreements, we agreed to loan the distribution partner up to $4.0 million, collateralized by all assets owned by the distribution partner. The advance period for the loan was amended in August 2017 and now begins each year on September 1 and ends each year on December 31. Interest on the outstanding principal accrues at a rate per annum equal to the greater of 6.0% or the Eurodollar Base Rate, or LIBOR, plus 4.0%, as determined on the first date of each annual advance period. The repayment of principal and accrued interest is due in three installments beginning in July and ending in August following the advance period. The term date of the loan is August 31, 2019; however, the borrower has the option to extend the term of the loan for two successive terms of one year each.

During the third quarter of 2017, the distribution partner repaid the entire $4.2 million balance of principal and interest due
for this note receivable under the first advance period, in accordance with the provisions of the loan agreement. From September 2017 to December 2017, our distribution partner drew $4.0 million under the second advance period.

The note receivable balance, which is recorded in other current assets, was $4.0 million and $3.0 million as of December 31, 2017 and 2016, respectively.

In April 2017, we entered into a subordinated credit agreement with an affiliated entity of the distribution partner and loaned the affiliated entity $3.0 million, with a maturity date of November 21, 2022. Interest on the outstanding principal balance accrues at a rate of 8.5% per annum and requires monthly interest payments. The $3.0 million loan receivable balance was included in other assets as of December 31, 2017.

For the year ended December 31, 2017, we recognized approximately $1.2 million of revenue from the distribution partners associated with these loans.